National Treasury Cabinet Secretary (CS) John Mbadi has announced the allocation of Ksh64.5 billion towards the Affordable Housing Programme in the 2025/26 financial year.
Addressing parliament when he read the 2025/26 financial year budget on Thursday, June 12, 2025, Mbadi stated that the government is creating employment through the program.
“Through the Affordable Housing Programme, the government is creating jobs for the youth directly in the construction sector and indirectly through the production of building products,” Mbadi stated.
Furthermore, he noted that President William Ruto’s government is committed to providing Kenyans with decent housing.
“The government is committed to facilitating the construction of decent, safe, and affordable houses for citizens of Kenya,” he stated.
The government has also allocated Ksh120.2 billion towards housing and settlement to create jobs for youth directly in the construction sector and the production of building products.
Further, he allocated Ksh16.5 billion for social and physical infrastructure, Ksh13.4 billion for the Kenya Urban Support Programme, Ksh10.5 billion towards the construction of social housing units, Ksh7.2 billion for the Kenya Informal Settlement Improvement Project – Phase II, Ksh3.5 billion for institutional housing, and Ksh0.45 billion for the construction of county headquarters.
New Mukuru Housing Estate
This comes a few weeks after President Ruto handed over 1,080 affordable housing units to residents of Mukuru in Nairobi, in what he described as the most consequential moment of his political career.
The units are part of the transformative 13,248-unit New Mukuru Housing Estate, which is set to become the largest real estate site in Kenya’s history.
The President commissioned Lot 1, Phase 1, on May 20, 2025, featuring over 5,616 bedsitters. Construction of Lot 2 and Lot 3, comprising 3,024 one-bedroom and 4,608 two-bedroom units, respectively, was already in progress.
“This is the most consequential day in my political career. We have handed over keys to life-changing 1,080 social housing units; these are not keys to open doors or houses; these are keys to homes,” said Ruto.
The head of state noted that the project is a turning point in the government’s affordable housing agenda to provide decent homes for Kenyans, particularly those at the bottom of the wealth pyramid.
“In these homes, we are providing better sanitation, security, and livelihoods to thousands of ordinary people who would never have had such a chance,” he said.
The president further revealed that over 200 similar housing projects are currently at various stages of completion across the country, creating employment for more than 200,000 young people.
